Creating the world’s first blockchain for dairy in 90 days
The increasing customer demand for transparency means companies can gain valuable competitive advantage by giving customers a glimpse of how their products are made. Arla Finland had an ambitious mission of offering consumers the most responsible and transparent milk production process in the world.
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Aiming for the world’s most transparent dairy production process
A 2017 study conducted by the Finnish Ministry of Agriculture and Forestry together with IRO Research found that Finnish consumers are concerned with whether their food is produced naturally, domestically, locally and responsibly. Out of the respondents, 70% had found at least some kind of information regarding the food’s origin on the label and only 23% on the manufacturer’s website.
Moreover, in a 2018 study into food trends by Taloustutkimus, 67% of the respondents wished that Finnish foodstuffs could be tracked all the way to the farm they came from.
A liquid product is an extremely difficult one to track precisely, but as a challenger in the Finnish market, and a producer that values social responsibility above all else, the logical step for Arla Finland was to show their commitment by aiming for radical transparency in their production chain.
Let’s actually launch something!
Arla Finland had an ambitious mission of offering consumers the most responsible and transparent milk production process in the world. The principles of blockchain technology (transparency, democratized data) matched nicely with the clear consumer demand for transparency and social responsibility. After careful consideration of options, it became clear blockchain technology offered natural benefits for Arla.
- Increased reliability of data
- Better shareability of data
- Higher standards of security
- Improved inventory management
- Increased consumer and partner trust
- Helps build a digital transformation culture
In order to get concrete learnings, it was important to have something tangible out quickly. We saw some global dairy manufacturers were already looking at the technology, some were even neck deep in heavy and complex development projected to take years! This was obviously not the way to approach the development of Arla Milkchain.
We set up an ambitious development timeline of only 3 months, after which we would launch the first MVP version and start gaining real life learnings, customer reactions and business impact.
Single estate milk on blockchain
Arla had the perfect product in the pipeline to test out the Arla Milkchain in practice – Single Estate Organic Milk. All the milk for the product comes from Tikka organic farm in Kurikka, Finland, and is processed by the Hämeenlinna Cooperative Dairy. Being able to show the production process throughout the supply chain was a major competitive advantage for the product.
Arla Milkchain records key data points throughout the production chain from the Tikka farm, the logistical transport from farm to dairy, and the dairy where the milk is stored, processed, packaged and quickly shipped to stores nationwide. Once the data is collected, it increases in value by providing a better understanding of the production chain. But it can also increase the consumers emotional attachment to the products they purchase by communicating the social responsibility mission of Arla in a concrete way.
The first data visualisation was produced on the website for Single Estate Organic Milk, where consumers enter the production date of their product, and can view rich data from the actual product batch in their hands.
Improved product relevance has resulted in higher interest and better penetration among major retail chains.
Arla Milkchain streamlines data gathering processes for a company operating in a very traditional industry.
The interest in Arla Milkchain has resulted in worldwide media coverage. 100+ articles have generated over 150 000 € in earned media value.
Arla Milkchain was implemented in only 90 days, making Arla Suomi the world’s first dairy company to successfully utilize blockchain technology for its supply chain management.
Brand & Category Manager
Head of Digital
Head of Communication
Head of Strategy, Service design, User interface design